Smart card network interface device

ABSTRACT

A smart card device is provided which may be directly hooked to a network or Internet via a phone or other communication interfaces. The smart card device includes a smart card reader and a communications interface, such as a MODEM, ( 54 ) an infra-red interface, RF, tone, or an Ethernet interface, and a minimal device controller. ( 52 ) A system and method for remotely verifying the identification (authentication) of the user of a smart card are also provided, and for completing the remote transaction. The invention supports two key functions (remote authentication and remote secure transaction) which can be carried out while the communication is not interrupted, and specifically (in the case of the telephone) while the call is in progress.

FIELD OF THE INVENTION

The present invention relates to the field of smart cards in general andin particular to a stand-alone device for reading smart cards andtransmitting information therefrom.

BACKGROUND OF THE INVENTION

Currently available smart card readers are typically integrated intocomputers or configured as computer peripheral equipment, connected tothe serial port of a personal computer, for example. Smart card readersmay also be integrated with cellular phone or set-top-boxes (TV), orbuilt into other equipment such as bank terminals, and keyboards, forexample. Generally, the host appliance, whether a computer, a cellularphone, or a Set-Top-Box, is responsible for providing the networkinterface. Normally smart card readers rely on the host device toprovide standard input-output (I/O) interface for the human-user on topof the network connectivity. The necessity of a host device limits thescope of smart card applications. For example, at present each cashierwith each merchant site requires its own host device, such as a PC or aPoint of Sale (POS) device, in order to read a card and if necessaryinterface with the central computer system.

Cellular phones may use the SIM chip of the phone itself as a smartcard, but this usage is limited to a specific application and does notallow for general-purpose smart card access. Alternatively, astandard-size smart card reader may be integrated with the (cellular)phone. In the latter case, the reader is dependent on specificproperties of the device or on the cellular service provider andtherefore it is third party dependent. The phone needs to be programmedto recognize each specific card in use, or alternatively the approval ofcellular telephone operator is required.

Set-top-box applications are limited to a communicating via a uniqueserver, for a specific card (the cable-operator card, or other pre-setcards), and human-interface is through the TV.

There is thus a need for a stand-alone device which does not need aseparate host device, or be integrated in a host device, such as acomputer, a POS, or a cellular phone, for example, and which allows anystandard card to establish a communication with the appropriate server,to implement the desired smart card applications.

SUMMARY OF THE INVENTION

The present invention is directed to a stand-alone device for readingand writing smart cards, which incorporates its own processing andnetwork interface. The device may be integrated into a telephone orother network-accessing device, which can capture the networkconnectivity. Furthermore, the general-purpose device allows for accessfor any card application for any smart card. Even when integrated intotelephones (cellular or landline), for example, the device does not haveto rely on specific telephone properties nor on the service provider,but rather it provides a general-purpose network access over telephone,or any other network media.

The computing power of the card is used for handling the requiredapplication layers, while the computing on the device is used only fornetwork interfacing. The device provides communication interfacesallowing the smart card to be exploited in its full potential, utilizingthe security capabilities of the smart card, and supportingauthentication using the (optional) PIN (Personal IdentificationNumber). Input and output for the user may be provided through eitherthe telephone, or optionally, an on-device display and keyboard.

In an embodiment of the present invention, there is provided a device,which includes a smart card reader and a communications interface, and acontroller that transfers data between these two interfaces. Thecommunications interface may be at least one interface including MODEM,infra-red (IR), Ethernet, radio frequency (RF), audio tones or any othercommunication media, coupled to the smart card reader.

In a further embodiment of the present invention, there is provided asystem for remotely verifying the identification (authentication) of theuser of a smart card. The system includes the smart card device of theinvention and a remotely located server in communication with thecommunications interface, the server having means for verifying thevalidity of the smart card being read by the smart card device, andother data keyed into the device. The remotely located server mayfurther comprise means for validating a certificate or means forgenerating a challenge that is then authenticated by the appropriateresponse from the device. The remotely located server may furthercomprise means for transferring e-goods or e-money.

Furthermore, the smart card device may be configured to be connectablebetween a telephone and the wall socket of a telephone line or to acellular telephone.

Furthermore, the communications interface may include at least one of agroup including a MODEM, Ethernet, infra-red (IR), RF and audio tones.

Furthermore, the smart card device may include a display screen and anumeric and/or functions keypad. The device may also include encryptionmeans and a connector for external devices. The external devices mayinclude a printer, a keypad and a biometric data reader.

Furthermore, the power source may include at least one energy sourcefrom a group including an internal battery, an external power inlet, thecommunication media to which the device is coupled and a rechargeablebattery.

Furthermore, the smart card device may include at least one of a groupincluding a printer, a keypad and a biometric data reader integratedwithin the device. The smart card device may further include at leastone of a group of processing components including a additionalcomputation capabilities, additional communication interfaces andadditional encryption capabilities.

Furthermore, the smart card reader may include at least one memorycomponent including Read Only Memory (ROM), Non-Volatile Memory (NVM)and Random Access Memory (RAM).

In another embodiment of the present invention, there is provided amethod for verifying the identification of the remote user of a smartcard, the method including the steps of inserting a smart card into asmart card device of the invention, transmitting data to and from thesmart card, via the communications interface, to a remotely locatedserver, the remotely located server transferring transaction informationto the smart card device for approval, inputting privately knowninformation into the smart card device and transmitting the proof ofsignature (certificate) to the remotely located server, and the remotelylocated server verifying that the privately known information is thevalid one for the card.

In another embodiment of the present invention, there is provided amethod for remotely purchasing goods or services, the method includingthe steps of inserting a smart card into a smart card device of theinvention, selecting an item to be purchased from a supplier,transmitting data read from the smart card, via the communicationsinterface, to a remotely located server in communication with thesupplier, the remotely located server transferring transactioninformation associated with the purchase to the smart card device forapproval, and storing the transaction information in the smart card.

Furthermore, the method may include the step of authenticating theidentity of the smart card user. The step of authenticating may includethe steps of inputting privately known information, the smart cardverifying that the privately known information matches the smart carddata, and generating a certificate validating the transaction.

Furthermore, the step of authenticating may be performed by the remotelylocated server.

Furthermore, the transaction may involve e-goods, which can then bestored on the card itself, for a later use.

BRIEF DESCRIPTION OF THE DRAWINGS

The above and other characteristics and advantages of the invention willbe better understood through the following illustrative andnon-limitative detailed description of preferred embodiments thereof,with reference to the appended drawings, wherein:

FIG. 1 is a schematic illustration of a prior art example of anoperational environment for use with smart cards;

FIG. 2 is a schematic illustration of a smart card device constructedand operative according to an embodiment of the invention;

FIG. 2 a is a schematic illustration of the smart card device of FIG. 2hooked on to a standard telephone;

FIG. 3 is a schematic illustration of a smart card device, of FIG. 2hooked on to a cellular telephone;

FIG. 4 is a flow chart illustration of the use of the smart card deviceof FIG. 2;

FIG. 5 is a schematic illustration of a smart card device, according toanother embodiment of the invention; and

FIG. 6 is a flow chart illustration of a further use of the smart carddevice of FIG. 2.

DETAILED DESCRIPTION OF PREFERRED EMBODIMENTS

Reference is now made to FIG. 1, which is a schematic illustration of aprior art example of an operational environment for use with smartcards.

In the configuration of FIG. 1, a smart card 12, which may be insertedin a smart card reader 14 is in communication with a host device, suchas personal computer (PC) 16. Communication between the card reader 14and the host device 16 may be via any peripheral-device to PCcommunication interface, for example an RS-232 communication interface18. A MODEM 20 is connected to host device 16.

Data is read from the smart card 12 by smart card reader 14 andtransferred via the peripheral-device to communication interface 18. TheHost device 16 manages the interactions with the card, and when desiredit transfers information from and to host device 16 to and from the card12. To transfer data onwards, the modem 20 may communicate with a remoteserver 22 via the Internet 24, using any Internet protocol, such asHTTP, for example, or secured protocols if desired. In a similarprior-art configuration, the reader may be hooked to the cellular phone,which serves as a host, and caries much of the application's logic.

Reference is now made to FIG. 2, which is a schematic illustration of asmart card device, generally designated 50, according to an embodimentof the invention.

Smart card device 50 comprises a device controller 52 connected to asmart card reader 64 and a MODEM 54. It will be appreciated by personsknowledgeable in the art that the MODEM may be replaced by any othernetwork interface component, such as Bluetooth, I-R, or Ethernet asexamples. The controller 52 may comprise minimal processingcapabilities, such as transferring and correctly packaging onecommunications protocol to another in order to control any of theembodied devices. The memory may include Read Only Memory (ROM),Non-Volatile Memory (NVM) and Random Access Memory (RAM), for example. Asmart card reader 64 is connected to controller 52.

In a further embodiment of the invention, smart card device 50 mayfurther comprise a display 56 and minima keypad having at least one key58, or ports for attaching external equipment, such as an externalkeypad (not shown), or a printer.

In yet additional embodiments of the invention, the device may containan encryption device such as a SIM.

In yet additional embodiments of the invention, the device may contain abattery or an external power source. Alternatively, the specificcommunication media, to which the device is attached, may provide thepower supply for the device, or power may be supplied from a combinationof the above sources.

The smart card device 50 is configured to dial or hook into any network66, such as a telephone network, for example, and complete a two-wayprotocol, with the server 62. The server 62 may be any suitable networkserver, such as an Internet server, or an Interactive Voice Responseserver (IVR), depending on the desired network in use. In thisembodiment, data is read from the smart card 60 by smart card reader 64and transferred via MODEM 54 using voice-MODEM protocol, for example, toIVR Server 62.

In an exemplary embodiment, illustrated in FIG. 2 a, the smart carddevice 50 may be coupled between a telephone instrument 67 and thewall-socket of the telephone line 68.

Similarly, in an exemplary embodiment, illustrated in FIG. 3, a smartcard device, generally designated 100 may be connected to a transceiver,such as a cellular telephone 104, via any of the cellular telephoneinterfaces (such as, IR, ear-phone-speaker, or Bluetooth), and provideall the required access functions to a remote server 106. The remoteserver 106 may be an IVR or human service provider, or an SMS server.

Smart card device 100 comprises a controller 52 connected to a smartcard reader 64 (similar to the reader of FIG. 2) and coupled to aninfra-red (IR) transceiver 102, or any other interface capable of beingsupported by cellular phones.

In the embodiment of FIG. 3, the device 100 transmits and receives thedata read by smart card reader 64 via the IR transceiver 102 to an IRtransceiver located within the cellular device 104, which may then actas a device controller for a specific application. For example, IRreceiver 104 may cause the cellular phone to transmit authenticationdata read from the smart card 60 to remote server 106, using any of thecellular phone channels. After secure identification of the user andverification that ID matches the data from the smart card, the server106 may authorize the cellular phone 104 to interact with anotherexternal device and perform a requested/authorized action, oralternatively, the server may directly instruct the device to providethe requested access. This example is illustrative of the use of a smartcard device of the present invention for building low-cost“gate-keepers” based on cellular connectivity and smart cardauthentication capabilities.

In an alternative embodiment, the IR transceiver within the cellularphone 104 may allow the telephone's display and keyboard to be used. Thecellular phone may be used for full human dialogue with the server 106.

The operation of the smart card device may be described with referenceto the flow chart of FIG. 4, to which reference is now made. The userestablishes communication with the server of the service supplier (step200). Communication may be established by dialing from a phone, as shownin the embodiment of FIG. 2, or by hooking to the LAN, or by any othermean of joining the requested network. A transaction (deal) isnegotiated (step 201) or a service purchased or requested.

The smart card may be required either in order to complete theacceptance of the device into the network, in which case a handshake maybe required, or alternatively, the smart card may be required just forperforming the desired transaction. The smart card 60 is inserted intothe smart card device 50 (step 202), which reads the information on thesmart card (step 204). Alternatively, some networks may require that thecard be inserted before goods or a service is purchased. After the smartcard is inserted, the MODEM changes from voice mode to data mode, as isknown in the art, so as to allow data to be transferred. Alternatively,the network interface may select the appropriate transactional state.

In the prior art, user identity is generally authenticated in thefollowing manner: First, the user “identifies” himself, for example bystating his name (or by reading the open information on the card).Secondly, the user may be requested to show the card: ownership of thecard is perceived as a proof of identity. Since cards maybe lost,stolen, or copied—an additional proof is often required. This proof mayconsist of a PIN or secret information (such as the maiden name of thecard holder's mother), or by biometric information, which typicallycannot be given to others, or a combination thereof.

In an embodiment of the invention, the user's ownership of the card isproven by the insertion of the card into the device; the identity may befurther authenticated by transferring the smart card information to theservice provider, and/or by using additional mean like PIN and/orbiometric identification.

The PIN may be keyed on a keyboard that forms an integral part of thedevice, an external keyboard or the telephone keyboard. Biometric data(such as fingerprint, voice signature, iris pattern, hand palm, etc.)may be obtained using a biometric reader, integrated in the device, orby external means, as is known in the art.

The PIN and/or biometric data may be sent to the service provider (or tomediator card manager) as is, encrypted, or authenticated in the smartcard itself. In the latter case the authentication certificate is sentto the service provider, which may validate the certificate, as is knownin the art. When encrypted for sending, the device may use theintegrated SIM for encryption, or use the encryption engine of the smartcard itself, when possible.

Typically, besides the need to identify the user/customer, the merchantor service provider needs to obtain proof of the existence of thetransaction, and its details. At present, this confirmation is obtainedeither by having the customer sign a piece of paper where thetransaction data is recorded, or by generating a digital signature. Inan embodiment of the invention, confirmation may be obtained as follows:

The transaction information may be transferred to the device 50 for theuser's to review and/or to confirm and possibly also to store on thecard.

Confirmation may be obtained by keying a confirmation key (of thedevice, external, or the telephone keyboard), keying the PIN, or abiometric reader.

This information may be sent to the service provider in a way similar tosending the identification.

In an embodiment of the invention, confirmation may be obtained bygenerating an encrypted form, which ‘combines’ the transaction data andthe authenticated identity. The ‘combined form’ is sometimes referred toas a digital signature. This entire sequence is also known as a“challenge-response” mechanism.

All of these identification and certification mechanisms may be carriedout according to the flow chart of FIG. 4, to which reference is nowmade. The transaction information is transferred to the device 50 anddisplayed for approval (step 206). (The transaction information may alsobe stored in the card.) When the user types in his PIN (step 208), thecard uses the transaction information and the PIN code in order togenerate a digital proof, or a certificate, or alternatively, the PINmay be sent to the server to be used for certification andauthentication.

The service provider (bank, for example) checks the authentication ofthe user/caller (query box 210), either by validating the certificate,or by verifying the provided PIN. If the signature is valid (step 212),the service provider can then allow the user/caller to proceed to ordera service (step 214), such as loading e-money into the smart card, orjust proceeding with the conversation with the same person in theservice provider. If the certification or authentication processesfails, the service provider may perform one of several steps, such asrequesting a retry to overcome errors, decline the transaction, abortthe communication, or even, if authorized, disable the card (step 211).

In a further example, the smart card device may be utilized as acash-loading banking terminal, that is, as a remote service point forloading e-money into the smart card from a bank, for example. Otherapplications will be described hereinbelow.

Reference is now made to FIG. 5, which is a schematic illustration ofsmart card device, according to another embodiment of the invention.Elements having similar functions have been designated with similarnumerals and will not be described further.

FIG. 5 is a schematic illustration of a smart card device, generallydesignated 70, according to an embodiment of the invention. Smart carddevice 70 comprises a controller 52, which manages a smart card reader60 (similar to the reader of FIG. 2), and an Ethernet interface 72 for aLAN (Local Area Network) 74. In this embodiment, the smart card device70 is configured to utilize the Ethernet interface 72 and hook into aLAN 74, to access the Internet Server 62 directly from the device 70.The smart card 64 and the Internet server 62 can complete aclient-server application over the Internet and LAN without anyadditional computer for mediation. The controller of the smart carddevice 70 simply acts as a communication enabler, establishing the linkfor a complete client-server configuration.

In a further embodiment of the invention, smart card device 70 mayfurther comprise a display 56 and keyboard 58 (similar to FIG. 2). Itmay also contain an encryption module, such as a SIM.

The smart card device illustrated in the aforementioned embodiments maybe used in many different applications, as will now be described byreference to the non-limiting exemplary applications hereinbelow.

The smart card may be used for a remote credit/debit or pre-paidtransaction. This allows for carrying out secure transactions from home.In this case, the customer calls the merchant, inserts the card and thedevice at home and interacts directly with the POS at the merchant'sshop. The merchant's POS may communicate with the credit card company toreceive authorization to charge the sale. This allows for eliminatingone of the common fraud means, namely Card Not Present (CNP), whichmainly exists in the MOTO (mail order telephone order). By effectivelypresenting the card (by inserting it into the device), the merchant isassured that the customer cannot dispute the transaction. Entering thePIN in addition to the standard credit card details adds a further levelof authentication, and provides a “signature” on the transaction—this“signature” may be considered to be equivalent to a hand-writtensignature. This turns the “card not present” transactions into a fullyapproved transaction, thereby preventing and reducing the level offraud.

In an exemplary application, the smart card device 50 may be used forbuying merchandise from a supplier over the telephone when the card isnot present, that is, the card is not viewable by the supplier. The useof the smart card device allows the purchaser to effectively present andhave his card verified from a remote location, as will be described withreference to the flow chart illustration of FIG. 6.

The smart card device (of FIG. 2) is hooked on a phone-cord (step 302),connecting between the phone and the wall-socket (FIG. 2 a). The userselects which service to dial into (step 304), such as shopping from acall center, or food delivery (pizza etc), or call-charge. The userinserts a smart card into the smart card device (step 306) allowing themerchant to receive data relating to the user's smart card. The merchantverifies the authenticity of the smart card (step 308).

The user may activate a selected combination of keys using the numerickeyboard of the telephone or smart card device to identify a particulartransaction offered by the merchant (step 310). The transactioninformation is transferred to the smart card device and displayed forapproval (step 312). The transaction information may also be stored inthe card.

The user optionally enters a personal ID (PIN) number (step 314), usingdevice's keypad. The personal ID number (PIN) may be a merchant specificPIN number allocated to the user by the merchant, or typically, it maybe the card's PIN code. The use of the PIN is optional, depending on themerchant or card-issuer's policy. There is no need to transmit PINinformation over the phone, as the card performs the authentication.

The use of the PIN provides an additional verification for the merchant(step 314) and may be required, before the transaction is approved (step310), for example if the cost of the transaction is over some threshold.

The merchant checks authenticity of the signature, using standardcertificate procedures (digital signatures) of the user (query box 316)and if the signature is approved (authentication completed) (step 318),completes the sale (step 320). Otherwise, that is, if the digitalsignature is rejected (step 317), or if the card issuer or the“acquirer” disqualifies the card—the service may be denied (that is, thetransaction is rejected), or further, the issuer may de-activate thecard, using the issuer authority. This scenario may be carried outremotely from any telephone.

In an alternative application, the smart card device of the embodimentof FIG. 3 may be utilized with a cellular phone to make transactions.

In a further exemplary application, the smart card device 50 may be usedfor buying merchandise, using the e-money or coupons previously loadedand stored in the smart card. In this case, the card may be used for ane-cash operation (instead of as a credit/debit card) and communicationis directly to the on-line server of a merchant supplying goods orservices.

In a further exemplary application, the user may utilize the e-moneystored on the card for ordering telephone calls that avoid the necessityof purchasing prepaid cards, for example.

In a further exemplary application, the smart card device may be usedfor general authentication purposes, such as authentication of the ID ofa telephone caller. For example, a caller who wishes to verify his bankbalance may be requested to enter his smart card and PIN number (asdescribed hereinabove) before information is released over thetelephone. The use of the smart card device thus adds a further level ofuser authentication. The need to enter a PIN number into the device isoptional, but gives an improved level of security over existing methods,such as requesting personal information such as a passport number ormother's maiden name, information which also be known to other people.It will be appreciated by persons knowledgeable in the art that the PINneeds not be transmitted but rather may be tested by the card locally,and furthermore, all the communicated data may be encrypted as describedhereinabove.

In a further application of the present invention, the smart card devicemay be installed at a merchant's point of sale (POS) such as alow-volume or mobile merchant's shop. In this case, the smart carddevice could be used as a regular credit/debit card or alternatively fore-money transactions. In this scenario, the smart card device may be incommunication with the clearing-house server. This allows for removingthe need for an expensive POS, as the device itself is capable ofcomplying with payment regulations.

In a further application of the present invention, the smart card deviceof the present invention may be used in public transport, such as rail,bus or flights. For example, the smart card device may be used from hometo order flight, rail or bus tickets and/or reserving seats. In thisscenario, the user would call the transport company and purchase histickets and/or reserve seats using his smart card inserted in thedevice, similar to the method described above with reference to the flowcharts of FIGS. 3 and 6. The purchase may be by credit or with e-moneyand the purchase/reservation information would be stored in the card(e-ticket). In this case, the merchandize itself is also an electronicone, and therefore the transaction completion includes the delivery ofthe goods.

The transport company (bus or rail) would then verify thepurchase/reservation information by reading the traveler's smart cardvia contact reader or RF transceiver installed on buses or at therailway station. In a similar manner, the smart card may be used in thedevice to obtain e-coupons from suppliers, that is, coupons havingmonetary value for purchase of goods.

The card authentication can be performed in several ways as describedhereinabove with reference to FIGS. 4 and 6. The device is transparentto the authentication requirements, as this is carried out either by thecard, or by the remote server.

The above examples and description have of course been provided only forthe purpose of illustration, and are not intended to limit the inventionin any way. It will be appreciated that numerous modifications, all ofwhich fall within the scope of the present invention, exist. Rather thescope of the invention is defined by the claims that follow:

1-34. (canceled)
 35. A smart card device comprising: a controller; asmart card reader in communication with said controller; acommunications interface coupled to said controller; and a power source.36. The smart card device according to claim 35, configured to beconnectable to any of a) a telephone and the wall socket of a telephoneline, b) a cellular phone via either of a cable and anothercommunication interface, and c) a telephone and its handset.
 37. Thesmart card device according to claim 35, wherein said communicationsinterface includes any of a MODEM, an Ethernet interface, an infra-red(IR) interface, an RF interface, and audio tone capability.
 38. Thesmart card device according to claim 35, and further comprising any of adisplay screen, a numeric keypad, a function key keypad, and encryptionmeans.
 39. A system for remotely verifying the identification of theuser of a smart card, the system comprising: a smart card device,comprising: a controller; a smart card reader in communication with saidcontroller; a communication network interface coupled to saidcontroller; and a power circuit, and a remotely located server incommunication with said communications interface comprising means forverifying the validity of the smart card being read by said smart carddevice and other data keyed into said device.
 40. The system accordingto claim 39, wherein said remotely located server further comprisingmeans for performing any of validating a certificate and generating a“challenge” and accepting the “response” for said challenge.
 41. Thesystem according to claim 39, wherein said other data comprises at leastone of a personal identification number (PIN) and biometric data. 42.The system according to claim 39, wherein said remotely located serveris any of an Internet server, an Interactive Voice Recognition server(IVR), and a Point Of Sale (POS) server.
 43. The system according toclaim 39, wherein said remotely located server further comprises meansfor transferring any of e-goods and e-money.
 44. A method for verifyingthe identification of the remote user of a smart card, the methodcomprising the steps of: inserting a smart card into a smart carddevice, said smart card device comprising: a controller; a smart cardreader in communication with said controller; a communications interfacecoupled to said controller; and a power source; transmitting data fromthe smart card, via said communications interface, to a remotely locatedserver; inputting privately known information into said smart carddevice and transmitting said proof of signature to said remotely locatedserver; and said remotely located server verifying that said privatelyknown information is a valid one for the card.
 45. The method accordingto claim 44, wherein said privately known information includes any of apersonal identification number (PIN), biometric data, and otherpersonally known information.
 46. A method for remotely purchasing goodsor services, the method comprising the steps of: inserting a smart cardinto a smart card device, said smart card device comprising: acontroller; a smart card reader in communication with said controller; acommunications interface coupled to said controller; and a power source;selecting an item to be purchased from a supplier; transmitting dataread from the smart card, via said communications interface, to aremotely located server in communication with said supplier; saidremotely located server transferring transaction information associatedwith the purchase to said smart card device for approval; and storingsaid transaction information in said smart card.